Seib & Wessel: Progress on Financial Regulation

12/13/2013 12:42PM

The passing of the Volcker Rule, after two-and-a-half years, will change Wall Street. But WSJ's Deborah Solomon says the law won't take effect until 2015, and questions abound about how regulators will be able to enforce the new law.

This transcript has been automatically generated and may not be 100% accurate.

the ... meantime all closing along chapters in Washington this week another one was the Volcker rule is finding the Volcker rule in all its glory Dan started to two-and-a-half years and that that answer right to rule ... on that doesn't actually go into effect until twenty thirteen so it's ... not really really ... aam and a key test may notice that unit this week when it may prove that they basically were saying a lot of this is the fact Mrs can depend on how blogs in force and inconvenience point one and things back on the need this money for the day the agencies in charge especially for the ICC and CFTC which of the two agencies that that the appropriations process on ... but there's also can have a lot of ... the on discussion in court nation among regulators and how to be from multiple agencies are looking at essentially the same train ... so what happened was ... in the right leaders agreed you can't make risky bets a Bank and JPMorgan can make a risky bet for Ian Campbell for the house ... they can make markets for clients they can buy securities on the half clients and that they can do stuff that puts customer deposits at risk on ... and you know this was an idea that public or came up with and some people it said while ... it didn't feel upright retreating it can cause a crisis this this was unnecessary but ... eventually they all came together greeted me this is how will you do it's a thousand page document ... and it lays out an authentic and they cannot Zune but it does leave a lot of discretion to the banks and their regulators and so what is your within a couple of years is whether the regulators can all agree on whether a single trade Tuesday and proprietary trading for legitimate market ... the show is that the life of its own I think you know it defined ten the Dodd Frank here we look back and African ten years and look at the Volcker rule is ... contingent of inimical Wall Street is it just because there was ... a drag in the big banks that big enough they would pick up and I'm Simon was funny because most people think of the blogroll and Scott Franklin somehow became the most in a noticeable piece of it only because bubble Karen was in a mini was something people can sort of understand ... I'm actually is in the nose for the centerpiece of Dodd Frank a lot of the other pieces that it had already been planted and a lot more remain the haven't tell the couple too big to fail issue as a big lingering question the FTSE this weeks or ... more bones on its plan for how you take down a ... failing bank on what you do Europe is picking up something that you know that peace talks about how they would dismantle large failing banks ... the key questions and topics and cancer still are not satisfied so the basic idea of the Volcker rule is the bank is use it cannot take its clients' money and gamble that can trade all with its clients' money um seems pretty simple but you know the real reactions ranged from oh my God this is gonna change everything in the making industry to sell out we for an adjusted to that ... I assume the truth is somewhere in between it was really hard to tell this week ... how big the impact is now ... the sense of the year this was coming anyway reclined a lot of anglers are poring over this try to figure out how that it is or how great is and ... and and the fact that a lot of this remains at the discretion of banks is one of the ways that take effect the Jack Lew in others said they were going to prevent some of that you know negative effects that worried about when the stock back in May in the markets for people coming and who's going to be there too cute about what the quantitative easing was ending ... aam a lot people say look you know the markets are still bullish on banks for free to step in and play their normal role when it would provide a quick because they're worried about the Volcker rule to worry about all these regulations in the play should be doing this because you can crack ... the fall into the full functioning of financial markets ... regulators lessons that may say well what any piece indiscretion of some narrow boxing away you know you cannot do this it's you know ... the London whale that JPMorgan get passed out candy to copper foil hedging expand ... but areas where it may be kind of gray ... day left back to the discretion of the banks and regulators and they say that's what's going to help them deal with the cob we'll have to so quickly